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All You Need to Know About MSME Udyam Registration: A Complete Guide

If you run a small business or are an entrepreneur, you may be familiar with the MSME Udyam Registration. The Indian government discontinued the previous MSME registration process in 2020 and replaced it with this one. Everything you need to know about MSME Udyam Registration, including its advantages, prerequisites, and registration procedures, will be covered in this article.

What is MSME Udyam Registration?

The Indian government created the MSME Udyam Registration online registration process to assist and support micro, small, and medium-sized firms (MSMEs). In July 2020, this registration procedure was launched to replace the previous MSME procedure.

Small enterprises can receive a variety of Benefits of Udyam Registration, including access to government programmes, lending options, subsidies, and other advantages. The registration procedure is straightforward, and the whole thing may be done online.

Eligibility Criteria for MSME Udyam Registration

Your company must be a micro, small, or medium-sized enterprise in order to qualify for MSME Udyam Registration. The following are the requirements for each category:

  • Micro Enterprises: Companies having a minimum investment of Rs. 1 crore and a maximum annual revenue of Rs. 5 crore.
  • Small businesses are those with an investment of up to 10 crore rupees and a revenue of up to 50 crore rupees.
  • Businesses having an investment of up to Rs. 50 crore and a revenue of up to Rs. 250 crore are considered medium enterprises.

Benefits of MSME Udyam Registration

MSME Udyam Registration provides various benefits to small businesses, such as:

  • Subsidies and credit facilities are easily accessible.
  • Protection from buyer payments that are late.
  • Access to different government programmes, including the Interest Equalisation Scheme for Exporters and the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).
  • Reduced registration costs for patents and trademarks.
  • Access to numerous training and skill-development programmes.

Documents Needed to Register an MSME Under Udyam

The following papers are needed for MSME Udyam Registration:

  • A copy of the approved signatory’s Aadhaar card.
  • PAN card for the company.
  • Proof of a business address.
  • Account information.
  • NIC code for the company’s operations.

How to Register for MSME Udyam Registration?

The MSME Udyam Registration process is straightforward and may be finished online. The following are the steps to register for MSME Udyam Registration:

Visit MSME Udyam Registration Portal website.

  1. Enter the approved signatory’s Aadhaar number.
  2. Enter the company’s PAN card number.
  3. Type in the company name and other information.
  4. Add the company’s address and other information.
  5. Type in the bank account information.
  6. Type in the business activity’ NIC code.
  7. Make the payment and submit the application.

The registration certificate will be prepared and emailed to the registered email address when the application has been submitted.

Difference Between Udyam Registration and MSME Registration

The Indian government announced the new registration procedure, called MSME Udyam Registration, in 2020 to replace the previous MSME registration procedure. The following are the primary variations between Udyam Registration and MSME Registration:

  1. Validity duration: The Udyam Registration is valid for 10 years, whereas the MSME Registration had an infinite validity duration.
  2. Registration procedure: Unlike Udyam Registration, which is an online procedure with minimum documentation requirements, MSME Registration was a manual procedure that needed the submission of a variety of documents.
  3. Registration Fees: While Udyam Registration demands a little charge based on the type of business, there is a registration price for MSME Registration.
  4. Reporting Requirements: As part of the Udyam Registration process, companies must self-certify that they are in conformity with all applicable laws and regulations. This reporting requirement was not present in the old MSME Registration process.

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MSME Udyam Registration Fees

The registration fees for MSME Udyam Registration are as follows:

Micro Enterprises: Rs. 3,000

Small Enterprises: Rs. 4,000

Medium Enterprises: Rs. 6,000

Renewal of MSME Udyam Registration

The MSME Udyam Registration registration certificate is good for ten years. The business must renew its registration after the registration certificate expires. The MSME Udyam Registration renewal procedure is the same as the registration procedure, and there are no additional payments.

Businesses should avoid the following typical errors when completing the MSME Udyam Registration form:

  1. Supplying false information.
  2. Not submitting all of the necessary paperwork.
  3. Not making any changes to the registration information.
  4. Giving a false NIC code for commercial operations.

FAQs

  1. What is the objective of MSME Udyam Registration?

The objective of MSME Udyam Registration is to provide various benefits to small businesses, such as access to government schemes, credit facilities, subsidies, and other benefits.

  1. What is the eligibility criteria for MSME Udyam Registration?

To be eligible for MSME Udyam Registration, your business must fall under the category of micro, small, or medium enterprises.

  1. What are the documents required for MSME Udyam Registration?

The documents required for MSME Udyam Registration are Aadhaar card of the authorised signatory, PAN card of the business, business address proof, bank account details, and NIC code of the business activities.

  1. What is the difference between Udyam Registration and MSME Registration?

Udyam Registration is the new registration process introduced by the Indian government in 2020 to replace the old MSME registration process. The main differences between Udyam Registration and MSME Registration are the validity period, registration process, registration fees, and reporting requirements.

  1. How to renew MSME Udyam Registration?

The process for renewal of MSME Udyam Registration is similar to the registration process, and the fees for renewal are nominal.

Conclusion

The Indian government created the MSME Udyam Registration, a quick and straightforward online registration process, to offer many benefits to small enterprises. The registration procedure is straightforward, and the whole thing may be done online. Businesses that qualify for MSME Udyam Registration should use this chance to enroll in various government programs and receive rewards.

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